eBay, Etsy, OfferUp, Poshmark, Mercari, Reverb, and Tradesy Form Coalition for 1099-K Fairness
Leading online marketplaces eBay, Etsy, OfferUp, Poshmark, Mercari, Reverb, and Tradesy have formed The Coalition for 1099-K Fairness, a coalition committed to promoting an accessible and fair online sales market for entrepreneurs, microbusinesses, and casual sellers selling used and pre-owned goods via online platforms.
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The Coalition aims to promote the interests of millions of individual Americans and entrepreneurs selling goods online and advocate for common-sense tax reporting regulations.
The Coalition’s first priority is addressing a new federal tax reporting requirement passed by Congress last year that will disproportionately burden individuals selling used goods via online platforms.
The new requirement reduces the Internal Revenue Service (IRS) Form 1099-K reporting threshold for third-party settlement organizations to $600, from a previous threshold of $20,000 and 200 transactions.
An unfairly low $600 threshold will confuse and burden millions of Americans casually selling used and pre-owned goods that are not generating taxable income, as well as those entrepreneurs and microbusinesses just getting their business off the ground.
In a letter to lawmakers, the CEOs of leading e-commerce companies advocating for casual online sellers and microbusinesses urge the passage of legislation increasing the reporting threshold.
If left unchanged, the threshold reduction will:
- Hurt American families across the nation, many of whom earn extra dollars through selling used or pre-owned goods. Pandemic hardships have significantly increased the number of Americans selling used goods online;
- Cause confusion and uncertainty for millions of small sellers resulting in potential overreporting and overpayment of taxes, and costly tax preparation services;
- Deter the reuse and recycling of used goods, especially clothing and electronics; and
- Compound the resourcing challenges and backlogs the IRS is already facing even without millions of new 1099-K forms to process.
The Coalition for 1099-K Fairness Leaders
“Many casual sellers use recommerce platforms to earn a few extra dollars or give used goods a new home, and the undue burden from this reporting threshold will harm millions of these hardworking American taxpayers,” said eBay CEO Jamie Iannone. “eBay has always advocated on behalf of sellers, and the main priority of The Coalition for 1099-K Fairness is to protect our seller community.”
“Etsy is an onramp to entrepreneurship for many artists and makers. For microbusinesses just getting off the ground, this new requirement places an unfair burden to report small volumes of sales that are not generating taxable income. This type of barrier can harm millions of small creative makers in America looking to start a business,” said Josh Silverman, CEO of Etsy. “We join The Coalition for 1099-K Fairness to raise awareness and help ensure the smallest makers have a fair opportunity to succeed.”
“Reselling pre-loved goods has transformed the retail landscape to be more sustainable and valuable for both sellers and buyers,” said John Lagerling, Mercari US CEO.
“Poshmark empowers millions of Americans to earn critical funds selling items from their closets,” said Manish Chandra, Poshmark Founder and CEO. “The Coalition for 1099-K Fairness will help to ensure this economic opportunity remains accessible for sellers while also providing an important alternative for value-and sustainability-conscious shoppers.”
“Now more than ever, Americans are looking to save money by opting for secondhand goods amidst heightened environmental concerns and record inflation,” said Todd Dunlap, CEO of OfferUp. “The Coalition for 1099-K Fairness will protect the interests of recommerce communities and further OfferUp’s mission to provide a unique, simple, and trusted experience for local buyers and sellers nationwide.
“Reverb helps give music makers access to the world’s music gear. Importantly, our marketplace helps those same players sell their old gear so that they can make space and money for something new,” said Reverb CEO David Mandelbrot. “We are joining The Coalition for 1099-K Fairness to advocate for the musicians who are being negatively impacted by this new federal tax reporting requirement.”
“Tradesy and its network of individual sellers is changing the fashion landscape for the better by challenging disposable fashion and encouraging reselling,” said Tracy DiNunzio, CEO of Vestiaire Collective – North America. “We’re proud to support The Coalition for 1099-K Fairness to keep resale simple and ensure that top brands end up in closets instead of landfills.”
The Coalition for 1099-K Fairness is a coalition of online marketplaces committed to maintaining an accessible, fair, and safe recommerce market for used and pre-owned goods via online platforms.
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Editorial Note: This post is from a Company Press Release and may have been modified for clarity.